10 April,2026 11:20 AM IST | Mumbai | Samiullah Khan
Residents allege that the podium area, designated for parking as per sanctioned plans, has been wrongly shown as office units and mortgaged by the developer at Atharva Landmark. Pics/Nimesh Dave
A dispute between residents of Atharva Landmark Co-operative Housing Society in Malad East and Khush Housing Finance Private Limited (KHFL) has escalated into criminal allegations, with flat owners accusing the finance company of forgery, cheating, and illegal attempts to take possession of their homes despite existing court protection orders.
According to sources, two flat owners had purchased their homes after conducting due legal checks and were issued âNo Dues Certificates' by the developer. Independent title searches conducted in October 2021 confirmed that the flats were free from any mortgage or charge. Both complainants say they have been in peaceful possession since the purchase.
The dispute arose after KHFL initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, treating the flats as secured assets. Residents allege they were neither served demand notices under Section 13(2) nor informed of any loan linked to their properties.
Raj Chandresh Sheth, owner of Flat No. 1201, said action based on fabricated records. "I am the owner of Flat No. 1201 and have had it since 2021 after purchasing it through a registered agreement and receiving a âNo Dues Certificate' from the developer. A title search confirmed that the flat was free from encumbrances," Sheth said.
(right) Pragnya, wife of Raj, along with Raj's mother at their house. Pic/Nimesh Dave
"But, KHFL initiated SARFAESI proceedings claiming my flat as a secured asset without serving any notice. Upon inquiry, I found that the mortgage documents submitted before the court are different from those registered with the sub-registrar. These documents contain altered dates, forged signatures, missing statutory stamps, and handwritten insertions. By relying on such documents, the company misled the court and is now attempting to take possession without lawful authority. This is a case of fraud," he said.
Atharva Landmark Co-operative Housing Society in Malad East, where residents have alleged illegal possession attempts by a housing finance firm
A legal advisor for KHFL said the builder had committed fraud against both the buyers and the company. "The property was mortgaged and could not have been sold without our consent. The builder sold it regardless, making both the company and buyers victims," the advisor said. "While buyers are victims, they also had a responsibility to verify the mortgage status and obtain an NOC. The matter is sub judice and will be addressed before the court," the advisor added.
Anilgiri Tulsigiri Goswami, owner of Flat No. 301 "I bought the flat after a proper title search confirmed there was no mortgage. I took possession in January 2021. Despite this, SARFAESI proceedings were initiated without notice. Documents submitted before the court contain discrepancies, including inconsistent dates, forged signatures and missing stamps."
Kailashnath Yadav, secretary, and Jagdish Rajpopat, chairman Atharva Landmark
The housing society has also raised concerns over common areas. "As per plans, the entire second podium is designated only for parking. But, the finance company has claimed this area as âoffice units' and mortgaged it to sanction a loan to the developer," said Kailashnath D Yadav, secretary. "Attempts are now being made to take possession of our common parking area, which cannot be sold or mortgaged."
Advocate Jay Rajpopat, representing the society, said the space claimed by KHFL does not legally exist as saleable units. "As per BMC-sanctioned plans, the second-floor podium is approved as 43 parking spaces for which the society pays tax. These cannot be sold or mortgaged," he said. Advocate Akshit Kothari, appearing for the flat owners, said any attempt to take possession amounts to overriding judicial orders.
